Match the Costs That Follow to the Type of Product

question 103

Multiple Choice

Match the costs that follow to the type of product cost (a-c) or designate as not a product cost (d) .
-machine operator

• A)direct labor
• B)direct materials
• C)factory overhead
• D)not a product cost

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Definitions:

Unrealized Gains

Increases in the value of assets that a company holds which are not realized through a sale transaction.

Marketable Trading Investments

Securities that a company holds primarily for the purpose of trading and expects to sell in the short term to generate profit.

Unrealized Gain

Profit that has been achieved on paper due to an increase in the value of an investment but has not yet been realized through a sale.